Morgan Stanley's head of digital asset markets says DeFi is poised to keep its momentum in 2021
December 18, 2020, 12:23PM EST
1 min read
Morgan Stanley's head of digital asset markets says decentralized finance (DeFi) isn't going away in the coming year.
For now, Morgan Stanley has noted the so-called explosion of DeFi, according to Andrew Peel.
"I would say an evolution of this current momentum in terms of significant interest in the topic will continue through 2021," he said during The Block's Developing a Digital Asset Strategy panel.
Perhaps it'll move so quickly, he quipped, that the space will run out of food-based names next year. Regardless, he said the evolving technology will likely be applied to more traditional settings in the next two years.
"I think some of the technology from this DeFi phase will certainly be utilized in some more regulated way throughout 2021 towards 2022," he said.
He touted the programmable features of the technology as a way to rethink digital financial infrastructure, but did not specify which areas he sees DeFi disrupting in the coming years.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.